Global Construction Chemicals Market - 2024-2031

Global Construction Chemicals Market - 2024-2031

Global Construction Chemicals Market reached US$ 53.0 billion in 2023 and is expected to reach US$ 83.2 billion by 2031, growing with a CAGR of 5.8% during the forecast period 2024-2031.

Urban revitalization projects will be the key to unlocking future growth opportunities for the global market. Many municipal governments are focused on improving the quality of urban spaces and are moving away from car-centric infrastructure. The redevelopment of urban city centers will also boost commercial and residential real estate development in the surrounding areas.

A stagnation in economies of western Europe due to high inflation and rising energy costs is leading to a slowdown and even outright suspension of many construction projects. A decrease in European demand could have a knock on impact on Asian chemical producers, who rely on developed regions for exporting their surplus production. It would also slow down global market growth in the short term.

Dynamics

Expansion of Construction Activities Globally

Rapid urbanization in emerging countries of Asia-Pacific and the ongoing migration of populace from rural to urban areas is creating demand for better urban infrastructure. Stable economic growth over the past decade has improved socio-economic conditions and has raised disposable incomes in developing countries. Easing of financing regulations coupled with rising public sector investment have led to a boom in residential and commercial construction.

New residential apartments, commercial office parks, multipurpose complexes, shopping malls, stadiums, bridges, tunnels and mass transit systems have become some of the most prioritized infrastructure projects from private entities and the government. The rise in global construction activities is a major driver for the global construction chemicals market.

New Mega Projects in Asia-Pacific

In the post-pandemic period, the development of new mega projects has accelerated in the region. Governments are utilizing infrastructure spending as an economic stimulus to boost the overall economic growth. Apart from major emerging economic powers like China and India, southeast Asian countries are also undertaking the construction of mega projects.

In April 2024, the Indonesian government issued official guidelines for the construction of the country’s new greenfield capital city, Nusantara, on the island of Kalimantan in the east. Although the project has been under work since June 2022, environmental clearances had delayed the start of construction. With new mega projects becoming more prominent, the demand for construction chemicals will be rise rapidly during the later part of the forecast period.

Difficulty in Procurement of Raw Materials

After the COVID-19 pandemic, one of the main obstacles for manufacturers of construction chemicals was sourcing percursors in larger quantities. Before the start of the pandemic, the majority of producers in the construction chemicals market relied on China for the supply of presursors. However, given with many companies reorganizing their supply chains away from China, there could be a brief period, when the lack of Chinese capacity might create a temporary fluctuation in prices.



While many countries, like India are increasing their capacity to produce precursors, the temporary volatility in prices could potentially have huge knock-on effects on the construction industry, mainly leading to increased input costs. Such volatility could remain in place for at least a few years, leading to a potential loss of market growth in the medium term.

Segment Analysis

The global construction chemicals market is segmented based on type, end-user and region.

Commercial Construction Poised for Fastest Growth

The commercial sector is the largest market segment due to major public and private sector investments in commercial skyscrapers, government facilities, stadiums and entertainment venues, public work projects, retail outlets and business parks. The segment is also anticipated to witness the highest growth rate throughout the forecast period.

The commercial construction growth has been the fastest in Asia-Pacific, where urbanization is changing the face of cities. Even in developed countries of north America and Europe, revitalization of city centers into mixed-use urban real estate is also taking place. Commercial real estate development will continue to account for a significant share of the market during the forecast period.

Geographical Penetration

Asia-Pacific Will Have the Largest Market Share During the Forecast Period

Asia-Pacific will have a leading share in the global construction chemicals market. Along with China and India, other emerging countries like Indonesia, Thailand, Vietnam and Malaysia have also witnessed rapid growth in infrastructure development. China’s construction industry is expected to contribute nearly US$ 1.2 trillion worth of value output by 2031.

The Chinese government has unveiled a long-term plan to improve public amenities and further increase state-investment in infrastructure projects as a means to generate economic stimulus. China is pioneering the belt and road initiative (BRI), which is undertaking high-profile infrastructure projects across the region. The BRI is currently funding projects such as like highways, railways, ports and airports in Sri Lanka, Bangladesh, Pakistan, Laos and Cambodia.

COVID-19 Impact Analysis

The COVID-19 pandemic imposed significant costs on the construction chemicals market. Lockdowns imposed to slow the spread of the pandemic halted most construction activity, with the exception of a few critical projects. The pandemic hampered the production of construction chemicals, especially as most producers reduced production output in response to a widespread decrease in demand.

The pandemic will have a negligible impact on the medium to the long-term growth of the global market as most producers have recovered production beyond pre-pandemic levels and construction activity has continued to witness healthy expansion. The demand for construction chemicals remains perpetually strong in emerging markets, which will become key drivers of future growth.

Russia-Ukraine War Impact Analysis

The immediate impact of the war on was felt in the Russian market, as western construction chemical manufacturers exited the country following the imposition of stringent economic sanctions by U.S. and EU. It led to an immediate shortage of construction chemicals in the domestic market, as Russian chemical companies did not have the capability of producing the entire range of chemicals. Russian distributors began relying on Chinese producers to fulfill domestic demand.

Russian chemical producers are also undertaking R&D work for critical construction chemicals used in aerospace and defense applications. The global market experienced some volatility since Russia was a key producer of many precursor materials. However, the volatility has markedly reduced over the past year.

By Type
• Concrete Admixtures
• Protecting Coatings
• Adhesives & Sealants
• Lubricants
• Industrial Flooring
• Waterproofing Agents
• Grinding Aids
• Others

By End-User
• Residential
• Commercial
• Industrial
• Infrastructure

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Spain
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In February 2024, Saint Gobain, the French materials manufacturer, announced that it was in an advanced phase of testing new low-carbon additives for construction chemicals, including concrete admixtures.
• In December 2023, MC Bauchemie, a German manufacturer of advanced materials and specialty chemicals, announced that it had opened a subsidiary in Dar-es-Salaam, Tanzania. It was in response to growing demand for construction chemicals in east Africa.

Competitive Landscape

The major global players in the market include 3M, Arkema SA, BASF SE, Bolton Group, Akzo Nobel N.V., Albemarle Corporation, DuPont, Fosroc, Inc., W. R. Grace & Co and Henkel AG & Co. KGaA.

Why Purchase the Report?
• To visualize the global construction chemicals market segmentation based on type, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of pouch tapes market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global construction chemicals market report would provide approximately 53 tables, 49 figures and 185 Pages.

Target Audience 2024
• Construction Companies
• Cement Manufacturers
• Infrastructure Developers
• Industry Investors/Investment Bankers
• Research Professionals